New Zealand will ban disposable vapes and raise fines for those providing young Kiwis with e-cigarettes in a move lauded by health advocates.

Associate Health Minister Casey Costello announced on Wednesday the three-party coalition had agreed to prevent the sale of single-use vapes.

"While vaping has contributed to a significant fall in our smoking rates, the rapid rise in youth vaping has been a real concern for parents, teachers, and health professionals," Ms Costello said.

Reusable vapes will remain legal as "a key smoking cessation device".

Retailers found to be selling vapes to under-18s could be slugged up to $NZ100,000 ($A92,600), while individuals could be hit with a $NZ1000 ($A930) fine.

"There must be clear consequences for retailers found supplying vapes, or other regulated products like cigarettes, to minors," Ms Costello said.

The Asthma and Respiratory Foundation called the banning of disposable vapes "a crucial step forward in combating the youth vaping epidemic".

There are more than 1500 vape retailers in New Zealand.

Opposition health spokesman Ayesha Verrall said the government needed to go further and crack down on the number of retailers.

"We know that drives access that young people have to vapes," Dr Verrall said.

This month, other regulations come into force that will stop vapes being sold with images that might appeal to young people or with enticing names.

The Taxpayers Union attacked the shift, arguing it will drive people back to smoking.

"Extending this crackdown to a ban on disposable vapes will simply drive people back towards smoking and encourage a black market of unregulated vaping products as seen in Australia," spokesman Connor Molloy said.